On 29th July we published the updated Insurance criteria. A number of minor changes have been made since the last update in May 2019.
- Firstly, we have separated the three (‘3’) major insurance types in the sector risk score (Life, Non-Life and Medical) for key markets and streamlined the business profile assessment by consolidating premium diversification into competitive position.
- Within the Financial Profile we have simplified our approach to the Earnings assessment by refocusing on fewer key ratios on a forward-looking basis.
- Within the Capitalisation assessment, we have changed some risk charges within the GCR capital ratio and expanded/clarified the adjustments made after the initial Capitalisation score.
- The Liquidity Assessment has been changed to a forward looking uses versus sources approach to capture 12-month risks across Insurers.
The expected ratings impact is immaterial, in regards to both the number and significance of rating transitions due to the change.
The new criteria is available for download on GCR’s website.